Today’s REI Classroom Lesson

Dave Payerchin gives us a clever acronym that’s helpful when you’re talking with a motivated seller.

REI Classroom Summary

By getting to know your sellers hobbies, occupation, friends, and family, you’re able to relate to your seller and have them in turn be more comfortable with selling to you.

Listen to this REI Classroom Lesson

Real Estate Investing Classroom Show Transcripts:

Mike: Welcome back to the FlipNerd.com REI Classroom, where experts from across the real estate investing industry teach you quick lessons to take your business to the next level. And now, let’s meet today’s expert host.

Dave: Hi, everybody. It’s Dave Payerchin, your host in the REI Classroom, and today we are going to be talking about building rapport with motivated sellers.

Mike: This show is sponsored by PassiveRental.com

Dave: All right, you hungry real estate investors out there. I know many of you are out there marketing and you’re getting people calling you who want to sell or need to sell their house. And this is our job as a real estate investor. It is to put ourselves out there that we buy houses. People start communicating with you and contacting you and what we have found in our years of buying houses is you are not going to get very far when it comes to buying a house to getting a great deal, and creating a win-win scenario with the seller. You are not going to be able to accomplish that unless you build rapport first.

So we have a little formula here that we use when it comes to building rapport that worked very well. And I want you to remember the acronym form that is F-O-R-M. Now when you’re talking the seller, remember “F”. “F” Stands for friends and family. So when you’re talking to the seller, immediately start maybe asking questions about their family. “Oh, what does your husband do for a living?” If you’re walking through their house and you see a family photo, “Oh, how many children do you have?” That’s interesting. You can always find something to relate with people on. “Oh, I have children the same age. I have nieces, nephews, the same age I have brothers and sisters the same age.”

But talk about their family and get to know their family. You’re going to be able to relate on that topic as well as friends. If you have mutual friends or hang out in similar places, chances are you’re going to know similar people and that’s a great way to build rapport.

“O” in our acronym, “F” is friends and family, “O” is occupation. “What you do for a living?” And learn more. If they’re a dentist, obviously, you are probably some who gets your teeth cleaned. Talk about the dentist office. If they are a firefighter, if they’re ex-military, something like that, tip your hat to the troops. But find out what they do for a living that’s going to be a great area to build rapport.

“R” is recreation. Let’s say that you’re walking through the house and you see a bag of golf clubs or a bowling ball. “What do you do for fun?” A tennis racket, “Oh, you play tennis? My business partner plays tennis,” or, “You golf? Did you see Jason Day?” Talk about what’s happening in the sports world if you see that they like a particular sport or football team. For instance, “Oh, you’re a Cowboys fan? You’re a Cleveland Browns fan? I’m very sorry to hear that. I am as well.” But “R” is recreation.

Make sure you cover “F”, “O” and “R” before you go to M. And M is the money. So before all, a lot of new investors, they make a mistake going on appointment and just jumping right in and saying, “Oh, what do you want for the property? Let’s talk about the money and the offer,” and stuff like that. Before you talk about the money, make sure you build rapport with friends and family, occupation and recreation and then M is the money. Hopefully, you found this helpful and I look forward to seeing you in the next classroom.

Mike: PassiveRental.com is your source for turnkey done-for-you rental properties. If you’d like to be an investor and not a landlord, please visit PassiveRental.com to learn how to purchase cash flowing, professionally managed rental properties in the hottest rental markets across the country. We can also help connect you with financing for your next property. Invest the easy way today and get started by visiting PassiveRental.com.

Please note, the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or taxes decisions, as real estate investing can be risky.

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I have been investing in real estate since 2005. I started out wholesaling and moved into raising capital to build a buy and hold portfolio. My business partner and I currently own over 40 rental homes and we are buying more. I also specialize in selling turnkey investment properties in Columbus Ohio.To learn more, visit Dave's website above